S.B. 155 Enrolled

COUNTY MENTAL HEALTH AMENDMENTS
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: Gene Davis

LONG TITLE
General Description:
This bill amends provisions related to the Local Mental Health and Local Substance
Abuse Authority.
Highlighted Provisions:
This bill:
. adds a representative of the legislative body of each participating county to the
advisory council;
. requires the county legislative body to approve the funding and service delivery plan
for the local authority; and
. restricts use of public funds to purposes authorized in the mental health or substance
abuse plan.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
17-43-201, as renumbered and amended by Chapter 22 and last amended by Chapter
262, Laws of Utah 2003
17-43-203, as renumbered and amended by Chapter 22 and last amended by Chapter
262, Laws of Utah 2003
17-43-301, as renumbered and amended by Chapter 22 and last amended by Chapters
195 and 262, Laws of Utah 2003

17-43-303, as renumbered and amended by Chapter 22 and last amended by Chapter 262,
Laws of Utah 2003
17-43-309, as renumbered and amended by Chapter 22, Laws of Utah 2003
62A-15-102, as renumbered and amended by Chapter 8, Laws of Utah 2002, Fifth Special
Session

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 17-43-201 is amended to read:
17-43-201. Local substance abuse authorities -- Responsibilities.
(1) (a) (i) In each county operating under a county executive-council form of government
under Section 17-52-504 , the county [executive] legislative body is the local substance abuse
authority, provided however that any contract for plan services shall be administered by the
county executive.
(ii) In each county operating under a council-manager form of government under Section
17-52-505 , the county manager is the local substance abuse authority.
(iii) In each county other than a county described in Subsection (1)(a)(i) or (ii), the
county legislative body is the local substance abuse authority.
(b) Within legislative appropriations and county matching funds required by this section,
and under the policy direction of the board and the administrative direction of the division, each
local substance abuse authority shall:
(i) develop substance abuse prevention and treatment services plans; and
(ii) provide substance abuse services to residents of the county.
(2) (a) By executing an interlocal agreement under Title 11, Chapter 13, Interlocal
Cooperation Act, two or more counties may join to provide substance abuse prevention and
treatment services.
(b) The legislative bodies of counties joining to provide services may establish acceptable
ways of apportioning the cost of substance abuse services.
(c) Each agreement for joint substance abuse services shall:

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(i) (A) designate the treasurer of one of the participating counties or another person as the
treasurer for the combined substance abuse authorities and as the custodian of moneys available
for the joint services; and
(B) provide that the designated treasurer, or other disbursing officer authorized by the
treasurer, may make payments from the moneys for the joint services upon audit of the
appropriate auditing officer or officers representing the participating counties;
(ii) provide for the appointment of an independent auditor or a county auditor of one of
the participating counties as the designated auditing officer for the combined substance abuse
authorities;
(iii) (A) provide for the appointment of the county or district attorney of one of the
participating counties as the designated legal officer for the combined substance abuse authorities;
and
(B) authorize the designated legal officer to request and receive the assistance of the
county or district attorneys of the other participating counties in defending or prosecuting actions
within their counties relating to the combined substance abuse authorities; and
(iv) provide for the adoption of management, clinical, financial, procurement, personnel,
and administrative policies as already established by one of the participating counties or as
approved by the legislative body of each participating county or interlocal board.
(d) An agreement for joint substance abuse services may provide for joint operation of
services and facilities or for operation of services and facilities under contract by one participating
local substance abuse authority for other participating local substance abuse authorities.
(3) (a) Each local substance abuse authority is accountable to the department, the
Department of Health, and the state with regard to the use of state and federal funds received
from those departments for substance abuse services, regardless of whether the services are
provided by a private contract provider.
(b) Each local substance abuse authority shall comply, and require compliance by its
contract provider, with all directives issued by the department and the Department of Health
regarding the use and expenditure of state and federal funds received from those departments for

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the purpose of providing substance abuse programs and services. The department and
Department of Health shall ensure that those directives are not duplicative or conflicting, and shall
consult and coordinate with local substance abuse authorities with regard to programs and
services.
(4) Each local substance abuse authority shall:
(a) review and evaluate substance abuse prevention and treatment needs and services,
including substance abuse needs and services for individuals incarcerated in a county jail or other
county correctional facility;
(b) annually prepare and submit to the division a plan approved by the county legislative
body for funding and service delivery that includes:
(i) provisions for services, either directly by the substance abuse authority or by contract,
for adults, youth, and children, including those incarcerated in a county jail or other county
correctional facility; and
(ii) primary prevention, targeted prevention, early intervention, and treatment services;
(c) establish and maintain, either directly or by contract, programs licensed under Title
62A, Chapter 2, Licensure of Programs and Facilities;
(d) appoint directly or by contract a full or part time director for substance abuse
programs, and prescribe the director's duties;
(e) provide input and comment on new and revised policies established by the board;
(f) establish and require contract providers to establish administrative, clinical,
procurement, personnel, financial, and management policies regarding substance abuse services
and facilities, in accordance with the policies of the board, and state and federal law;
(g) establish mechanisms allowing for direct citizen input;
(h) annually contract with the division to provide substance abuse programs and services
in accordance with the provisions of Title 62A, Chapter 15, Substance Abuse and Mental Health
Act;
(i) comply with all applicable state and federal statutes, policies, audit requirements,
contract requirements, and any directives resulting from those audits and contract requirements;

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(j) promote or establish programs for the prevention of substance abuse within the
community setting through community-based prevention programs;
(k) provide funding equal to at least 20% of the state funds that it receives to fund
services described in the plan;
(l) comply with the requirements and procedures of Title 11, Chapter 13, Interlocal
Cooperation Act, Title 17A, Chapter 1, Part 4, Uniform Fiscal Procedures for Special Districts
Act, and Title 51, Chapter 2, Audits of Political Subdivisions, Interlocal Organizations and Other
Local Entities;
(m) for persons convicted of driving under the influence in violation of Subsection
41-6-44 (2) or Section 41-6-44.6 , conduct the following as defined in Section 41-6-44 :
(i) a screening and assessment;
(ii) an educational series; and
(iii) substance abuse treatment; and
(n) utilize proceeds of the accounts described in Subsection 62A-15-503 (1) to supplement
the cost of providing the services described in Subsection (4)(m).
(5) Before disbursing any public funds, each local substance abuse authority shall require
that each entity that receives any public funds from the local substance abuse authority agrees in
writing that:
(a) the entity's financial records and other records relevant to the entity's performance of
the services provided to the local substance abuse authority[, except patient identifying
information,] shall be subject to examination by:
(i) the division;
(ii) the local substance abuse authority director;
(iii) (A) the county treasurer and county or district attorney; or
(B) if two or more counties jointly provide substance abuse services under an agreement
under Subsection (2), the designated treasurer and the designated legal officer;
(iv) the county legislative body; and
(v) in a county with a county executive that is separate from the county legislative body,

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the county executive;
(b) the county auditor may examine and audit the entity's financial and other records
relevant to the entity's performance of the services provided to the local substance abuse
authority; and
(c) the entity will comply with the provisions of Subsection (3)(b).
(6) A local substance abuse authority may receive property, grants, gifts, supplies,
materials, contributions, and any benefit derived therefrom, for substance abuse services. If those
gifts are conditioned upon their use for a specified service or program, they shall be so used.
(7) (a) As used in this section, "public funds" means the same as that term is defined in
Section 17-43-203 .
[(b) Nothing in this section limits or prohibits an organization exempt under Section
501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
financial arrangement that is otherwise lawful for that organization.]
(b) Public funds received for the provision of services pursuant to the local substance
abuse plan may not be used for any other purpose except those authorized in the contract between
the local substance abuse authority and the provider for the provision of plan services.
Section 2. Section 17-43-203 is amended to read:
17-43-203. Definition of "public funds" -- Responsibility for oversight of public
funds -- Substance abuse programs and services.
(1) As used in this section, "public funds":
(a) means:
(i) federal money received from the department or the Department of Health; and
(ii) state money appropriated by the Legislature to the department, the Department of
Health, a county governing body, or a local substance abuse authority for the purposes of
providing substance abuse programs or services; and
(b) includes that federal and state money:
(i) even after the money has been transferred by a local substance abuse authority to a
private provider under an annual or otherwise ongoing contract to provide comprehensive

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substance abuse programs or services for the local substance abuse authority; and
(ii) while in the possession of the private provider.
(2) Each local substance abuse authority is responsible for oversight of all public funds
received by it, to determine that those public funds are utilized in accordance with federal and
state law, the rules and policies of the department and the Department of Health, and the
provisions of any contract between the local substance abuse authority and the department, the
Department of Health, or a private provider. That oversight includes requiring that neither the
contract provider, as described in Subsection (1), nor any of its employees:
(a) violate any applicable federal or state criminal law;
(b) knowingly violate any applicable rule or policy of the department or Department of
Health, or any provision of contract between the local substance abuse authority and the
department, the Department of Health, or the private provider;
(c) knowingly keep any false account or make any false entry or erasure in any account of
or relating to the public funds;
(d) fraudulently alter, falsify, conceal, destroy, or obliterate any account of or relating to
public funds;
(e) fail to ensure competent oversight for lawful disbursement of public funds;
(f) appropriate public funds for an unlawful use or for a use that is not in compliance with
contract provisions; or
(g) knowingly or intentionally use public funds unlawfully or in violation of a
governmental contract provision, or in violation of state policy.
[(3) Nothing in this section limits or prohibits an organization exempt under Section
501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
financial arrangement that is otherwise lawful for that organization.]
[(4)] (3) Each local substance abuse authority that knows or reasonably should know of
any of the circumstances described in Subsection (2), and that fails or refuses to take timely
corrective action in good faith shall, in addition to any other penalties provided by law, be
required to make full and complete repayment to the state of all public funds improperly used or

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expended.
[(5)] (4) Any public funds required to be repaid to the state by a local substance abuse
authority under Subsection [(4)] (3), based upon the actions or failure of the contract provider,
may be recovered by the local substance abuse authority from its contract provider, in addition to
the local substance abuse authority's costs and attorney's fees.
Section 3. Section 17-43-301 is amended to read:
17-43-301. Local mental health authorities -- Responsibilities.
(1) (a) (i) In each county operating under a county executive-council form of government
under Section 17-52-504 , the county [executive] legislative body is the local mental health
authority, provided however that any contract for plan services shall be administered by the
county executive.
(ii) In each county operating under a council-manager form of government under Section
17-52-505 , the county manager is the local mental health authority.
(iii) In each county other than a county described in Subsection (1)(a)(i) or (ii), the
county legislative body is the local mental health authority.
(b) Within legislative appropriations and county matching funds required by this section,
under the policy direction of the board and the administrative direction of the division, each local
mental health authority shall provide mental health services to persons within the county.
(2) (a) By executing an interlocal agreement under Title 11, Chapter 13, Interlocal
Cooperation Act, two or more counties may join to provide mental health prevention and
treatment services.
(b) The legislative bodies of counties joining to provide services may establish acceptable
ways of apportioning the cost of mental health services.
(c) Each agreement for joint mental health services shall:
(i) (A) designate the treasurer of one of the participating counties or another person as
the treasurer for the combined mental health authorities and as the custodian of moneys available
for the joint services; and
(B) provide that the designated treasurer, or other disbursing officer authorized by the

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treasurer, may make payments from the moneys available for the joint services upon audit of the
appropriate auditing officer or officers representing the participating counties;
(ii) provide for the appointment of an independent auditor or a county auditor of one of
the participating counties as the designated auditing officer for the combined mental health
authorities;
(iii) (A) provide for the appointment of the county or district attorney of one of the
participating counties as the designated legal officer for the combined mental health authorities;
and
(B) authorize the designated legal officer to request and receive the assistance of the
county or district attorneys of the other participating counties in defending or prosecuting actions
within their counties relating to the combined mental health authorities; and
(iv) provide for the adoption of management, clinical, financial, procurement, personnel,
and administrative policies as already established by one of the participating counties or as
approved by the legislative body of each participating county or interlocal board.
(d) An agreement for joint mental health services may provide for:
(i) joint operation of services and facilities or for operation of services and facilities under
contract by one participating local mental health authority for other participating local mental
health authorities; and
(ii) allocation of appointments of members of the mental health advisory council between
or among participating counties.
(3) (a) Each local mental health authority is accountable to the department, the
Department of Health, and the state with regard to the use of state and federal funds received
from those departments for mental health services, regardless of whether the services are provided
by a private contract provider.
(b) Each local mental health authority shall comply, and require compliance by its
contract provider, with all directives issued by the department and the Department of Health
regarding the use and expenditure of state and federal funds received from those departments for
the purpose of providing mental health programs and services. The department and Department

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of Health shall ensure that those directives are not duplicative or conflicting, and shall consult and
coordinate with local mental health authorities with regard to programs and services.
(4) (a) Each local mental health authority shall:
(i) review and evaluate mental health needs and services, including mental health needs
and services for persons incarcerated in a county jail or other county correctional facility;
(ii) as provided in Subsection (4)(b), annually prepare and submit to the division a plan
approved by the county legislative body for mental health funding and service delivery, either
directly by the local mental health authority or by contract;
(iii) establish and maintain, either directly or by contract, programs licensed under Title
62A, Chapter 2, Licensure of Programs and Facilities;
(iv) appoint, directly or by contract, a full-time or part-time director for mental health
programs and prescribe the director's duties;
(v) provide input and comment on new and revised policies established by the board;
(vi) establish and require contract providers to establish administrative, clinical, personnel,
financial, procurement, and management policies regarding mental health services and facilities, in
accordance with the policies of the board and state and federal law;
(vii) establish mechanisms allowing for direct citizen input;
(viii) annually contract with the division to provide mental health programs and services in
accordance with the provisions of Title 62A, Chapter 15, Substance Abuse and Mental Health
Act;
(ix) comply with all applicable state and federal statutes, policies, audit requirements,
contract requirements, and any directives resulting from those audits and contract requirements;
(x) provide funding equal to at least 20% of the state funds that it receives to fund
services described in the plan;
(xi) comply with the requirements and procedures of Title 11, Chapter 13, Interlocal
Cooperation Act, Title 17A, Chapter 1, Part 4, Uniform Fiscal Procedures for Special Districts
Act, and Title 51, Chapter 2, Audits of Political Subdivisions, Interlocal Organizations and Other
Local Entities; and

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(xii) take and retain physical custody of minors committed to the physical custody of local
mental health authorities by a judicial proceeding under Title 62A, Chapter 15, Part 7,
Commitment of Persons Under Age 18 to Division of Substance Abuse and Mental Health.
(b) Each plan under Subsection (4)(a)(ii) shall include services for adults, youth, and
children, which [may] shall include:
(i) inpatient care and services;
(ii) residential care and services;
(iii) outpatient care and services;
(iv) 24-hour crisis care and services;
(v) psychotropic medication management;
(vi) psychosocial rehabilitation, including vocational training and skills development;
(vii) case management;
(viii) community supports, including in-home services, housing, family support services,
and respite services;
(ix) consultation and education services, including case consultation, collaboration with
other county service agencies, public education, and public information; and
(x) services to persons incarcerated in a county jail or other county correctional facility.
(5) Before disbursing any public funds, each local mental health authority shall require
that each entity that receives any public funds from a local mental health authority agrees in
writing that:
(a) the entity's financial records and other records relevant to the entity's performance of
the services provided to the mental health authority[, except patient identifying information,] shall
be subject to examination by:
(i) the division;
(ii) the local mental health authority director;
(iii) (A) the county treasurer and county or district attorney; or
(B) if two or more counties jointly provide mental health services under an agreement
under Subsection (2), the designated treasurer and the designated legal officer;

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(iv) the county legislative body; and
(v) in a county with a county executive that is separate from the county legislative body,
the county executive;
(b) the county auditor may examine and audit the entity's financial and other records
relevant to the entity's performance of the services provided to the local mental health authority;
and
(c) the entity will comply with the provisions of Subsection (3)(b).
(6) A local mental health authority may receive property, grants, gifts, supplies, materials,
contributions, and any benefit derived therefrom, for mental health services. If those gifts are
conditioned upon their use for a specified service or program, they shall be so used.
(7) (a) As used in this section, "public funds" means the same as that term is defined in
Section 17-43-303 .
[(b) Nothing in this section limits or prohibits an organization exempt under Section
501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
financial arrangement that is otherwise lawful for that organization.]
(b) Public funds received for the provision of services pursuant to the local mental health
plan may not be used for any other purpose except those authorized in the contract between the
local mental health authority and the provider for the provision of plan services.
Section 4. Section 17-43-303 is amended to read:
17-43-303. Definition of "public funds" -- Responsibility for oversight of public
funds -- Mental health programs and services.
(1) As used in this section, "public funds":
(a) means:
(i) federal money received from the department or the Department of Health; and
(ii) state money appropriated by the Legislature to the department, the Department of
Health, a county governing body, or a local mental health authority for the purposes of providing
mental health programs or services; and
(b) includes that federal and state money:

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(i) even after the money has been transferred by a local mental health authority to a
private provider under an annual or otherwise ongoing contract to provide comprehensive mental
health programs or services for the local mental health authority; and
(ii) while in the possession of the private provider.
(2) Each local mental health authority is responsible for oversight of all public funds
received by it, to determine that those public funds are utilized in accordance with federal and
state law, the rules and policies of the department and the Department of Health, and the
provisions of any contract between the local mental health authority and the department, the
Department of Health, or a private provider. That oversight includes requiring that neither the
contract provider, as described in Subsection (1), nor any of its employees:
(a) violate any applicable federal or state criminal law;
(b) knowingly violate any applicable rule or policy of the department or Department of
Health, or any provision of contract between the local mental health authority and the department,
the Department of Health, or the private provider;
(c) knowingly keep any false account or make any false entry or erasure in any account of
or relating to the public funds;
(d) fraudulently alter, falsify, conceal, destroy, or obliterate any account of or relating to
public funds;
(e) fail to ensure competent oversight for lawful disbursement of public funds;
(f) appropriate public funds for an unlawful use or for a use that is not in compliance with
contract provisions; or
(g) knowingly or intentionally use public funds unlawfully or in violation of a
governmental contract provision, or in violation of state policy.
[(3) Nothing in this section limits or prohibits an organization exempt under Section
501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
financial arrangement that is otherwise lawful for that organization.]
[(4)] (3) A local mental health authority that knew or reasonably should have known of
any of the circumstances described in Subsection (2), and that fails or refuses to take timely

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corrective action in good faith shall, in addition to any other penalties provided by law, be
required to make full and complete repayment to the state of all public funds improperly used or
expended.
[(5)] (4) Any public funds required to be repaid to the state by a local mental health
authority pursuant to Subsection [(4)] (3), based upon the actions or failure of the contract
provider, may be recovered by the local mental health authority from its contract provider, in
addition to the local mental health authority's costs and attorney's fees.
Section 5. Section 17-43-309 is amended to read:
17-43-309. Local mental health advisory councils -- Powers and responsibilities.
(1) A county legislative body may, separately or in conjunction with one or more other
counties, establish a local mental health advisory council.
(2) Mental health advisory council members shall be appointed by their respective county
legislative bodies. Initially one-fourth of the members shall be appointed for one year, one-fourth
for two years, one-fourth for three years, and one-fourth for four years. After the initial
appointment, the term of each member shall be for four years. Vacancies shall be filled in the
same manner as for unexpired terms. Council members may be removed for cause.
(3) Each mental health advisory council shall be responsible and advisory to local mental
health authorities in planning, organizing, and operating community mental health programs.
(4) Council members shall be selected from persons representative of interested groups in
the community, including, if possible:
(a) an officer or employee of the school district within the city or county;
(b) one or more persons familiar with problems in mental health, as these are involved in
proceedings in criminal, domestic, or juvenile courts;
(c) one or more members of voluntary health, welfare, or mental health associations or
agencies; [and]
(d) a member of the legislative body of each participating county; and
[(d)] (e) at least one person licensed in this state to practice medicine and surgery in all
their branches and engaged in the private practice of medicine.

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(5) Council members may be reimbursed for actual and necessary expenses incurred in the
performance of official duties, from funds made available to local mental health authorities.
(6) Each mental health advisory council shall be an agent of the local mental health
authority, and is subject to laws and requirements relating to the local mental health authority.
Section 6. Section 62A-15-102 is amended to read:
62A-15-102. Definitions.
As used in this chapter:
(1) "Board" means the Board of Substance Abuse and Mental Health established in
accordance with Sections 62A-1-105 and 62A-15-106 .
(2) "Director" means the director of the Division of Substance Abuse and Mental Health.
(3) "Division" means the Division of Substance Abuse and Mental Health established in
Section 62A-15-103 .
(4) "Local mental health authority" means a county legislative body.
(5) "Local substance abuse authority" means a county legislative body.
(6) (a) "Public funds" means federal monies received from the Department of Human
Services or the Department of Health, and state monies appropriated by the Legislature to the
Department of Human Services, the Department of Health, a county governing body, or a local
substance abuse authority, or a local mental health authority for the purposes of providing
substance abuse or mental health programs or services.
(b) "Public funds" includes those federal and state monies that have been transferred by a
local substance abuse authority or a local mental health authority to a private provider under an
annual or otherwise ongoing contract to provide comprehensive substance abuse or mental health
programs or services for the local substance abuse authority or local mental health authority.
Those monies maintain the nature of "public funds" while in the possession of the private entity
that has an annual or otherwise ongoing contract with a local substance abuse authority or a local
mental health authority to provide comprehensive substance abuse or mental health programs or
services for the local substance abuse authority or local mental health authority.
[(b) This definition of "public funds" does not limit or prohibit an organization exempt

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under Section 501(c)(3), Internal Revenue Code, from using public funds for any business
purpose or in any financial arrangement that is otherwise lawful for that organization.]
(c) Public funds received for the provision of services pursuant to substance abuse or
mental health service plans may not be used for any other purpose except those authorized in the
contract between the local mental health or substance abuse authority and provider for the
provision of plan services.
(7) "Severe mental disorder" means schizophrenia, major depression, bipolar disorders,
delusional disorders, psychotic disorders, and other mental disorders as defined by the board.

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